Will Bury Business Proposal

1238 words 5 pages
Running Head: [ [Will Bury Business Proposal] ]

Will Bury Business Proposal
Marisa Wachter
University of Phoenix
ECO 561
April 16th, 2012

In this paper we will discuss how to improve Will Bury’s business. We will look at ways to increase revenue; determine the fixed and variable costs for the business; and determine how to maximize profit. We will also address the pricing structure, product differentiation, and how to minimize the costs for the product. In all, we will have complete business proposal that will help Will Bury’s business become very successful.
Company Background Will Bury predicts that very soon, everyone will be reading or listening to everything digitally, including books that are only available in hard
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He will also need to consider the variable costs such as licensing fees, the cost of employees, or outsourcing fees if he chooses to go that route.
Profit Maximization In order to determine how many titles Will should transform (products to offer), he could compare his total revenue and total cost; or, compare the marginal revenue and marginal cost. (McConnell, Brue, & & Flynn, 2009, p. 180) For this proposal, we will examine the first method. Above we factored Will’s total revenue for the older titles if he were to lower his prices to $8, TR= $8,000 and the cost for Will to transform the older titles is not costing him anything at this time, as he is doing all the work himself. I think it would be important to estimate the cost of creating the files at $3 a book since Will is currently using his personal residence, and his business is consuming the utilities of his home and requires him to have special equipment. For the same 1,000 books we used to figure total revenue, TC=$3,000. Leaving Will with $5,000 total in profit. The other option is to analyze marginal revenue and marginal cost. This is done by comparing the amount each additional unit of

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